Recently, there has been development in Spain in relation to value-added tax (VAT) refunds post-Brexit, and the application of a European Court of Justice case to recent tax court rulings around indemnity payments. The old criteria applied by the General Directorate of Taxes (GDT) and the tax court were based on the ECJ case Société thermale (C-277/05) and, in general terms, it stated that payments received as an indemnity were not subject to VAT because, behind the payments, there was no supply of services/goods.
Source: globalcompliancenews.com
